Ontario, BC to boost Canadian Economy with Chinese Trading Hub


mentalfloss
#1
Ontario, BC teaming up to rally support for Chinese yuan trading hub in Canada

A push to create a yuan trading hub in Canada is gaining momentum as countries around the world race to boost their share of trading in Chinese currency, which has grown dramatically along with China’s economy.

The Toronto Financial Services Alliance, a group made up of some of Canada’s largest banks and financial institutions, and a British Columbia business organization called AdvantageBC, announced on Wednesday that they have joined forces to promote Canada as a centre for yuan trading.

Instead of competing, the groups agreed to work together to build support for a single Canadian hub, seen essential to this country’s ambitions to increase trade with China.

Both groups realized that “we have greater likelihood of success if we do this as a collective,” said Janet Ecker, president of the TFSA.

Unlike other major currencies that trade freely on international markets, the yuan is tightly controlled by the Chinese central bank. Without officially sanctioned access to a supply of yuan, trade with Chinese companies can be expensive and complicated, so it’s not surprising that as Chinese global trade has exploded over the last few years, competition among countries for the right to set up a trading hub has also taken off.

This has “massive” potential benefits for Canada, said C.J. Gavsie, head of foreign exchange products at BMO Capital Markets and co-chair of the TFSA’s renminbi working group.

Canadian financial institutions, with the help of the Bank of Canada, have been working on the initiative for more than a year, and the ball is now in the federal government’s court to take the next step and engage the Chinese government, Mr. Gavsie said.

“There has got to be discussions between our government and their government,” he said. “The next step, which we hope will be soon, is that there is an agreement from both governments to undertake this initiative.”

A spokeswoman for the Department of Finance said Ottawa supports the plan and that “recent preliminary discussions” have taken place with Chinese officials. However, she declined to provide details saying only that that the negotiations are at an “early stage.”

“The exact details of the apparatus behind the hub will be worked out over time as negotiations progress,” Stephanie Rubec said in an email.

AdvantageBC is a non-profit business group whose members are a cross-section of the province’s economy, including Canfor Pulp International Ltd, Angiotech Pharamaceuticals, Salman Partners Inc., as well as most of the big Canadian banks.

The TFSA, whose mandate is to promote Toronto as a global financial centre, is a public-private partnership backed by the big banks and life insurers, the Canada Pension Plan Investment Board, the Rotman School of Management, and the Province of Ontario.

According to the TFSA, the yuan is the second-most popular currency in global trade finance “and is growing faster than any other currency in the world.”

“While Canada’s financial industry is headquartered in Toronto, much of the country’s Canada-China trade passes through Vancouver, making it critical for both jurisdictions to work collaboratively so that Canadian businesses are able to take full advantage of this initiative,” the two groups said in a statement.

If the groups are successful, Canada would be the first yuan trading hub in the Americas. Other yuan hubs include London, Frankfurt, Luxembourg, Hong Kong, Singapore, Taiwan and Sydney.

As it stands, Canadian companies buying or selling goods to China typically transact in U.S. dollars and as a result they end up paying multiple conversion costs. Not only is it expensive but for Canadian companies “it lacks transparency, meaning there is an inherent exchange rate margin that’s plugged into them and their suppliers,” said Mr. Gavsie.

Ontario, B.C. teaming up to rally support for Chinese yuan trading hub in Canada | Financial Post (external - login to view)
 
petros
+1
#2
Nobody does trade with China do they? How would we do big amounts of trade without infrastructure? Money is one thing but the goods, how will get goods from the Pacific to points east?
 
mentalfloss
#3
It's all up to Harper to make sure there is a federal strategy in place.

Too bad he's busy selling oil ponds instead.
 
petros
+1
#4
Quote: Originally Posted by mentalflossView Post

It's all up to Harper to make sure there is a federal strategy in place.

Too bad he's busy selling oil ponds instead.

Where have you been for the last 7 years?

http://www.th.gov.bc.ca/highwayprojects/bchwy1/

Asia-Pacific Gateway and Corridor Initiative (external - login to view)

GTH | Global Transportation Hub – Saskatchewan's Gateway to the World (external - login to view)

www.p3canada.ca/en/about-p3s/...ypass-project/ (external - login to view)

www.edrgroup.com/library/frei...-edmonton.html (external - login to view)

Centreport Canada, Winnipeg Inland Port, Manitoba, Trade - Centreport Canada (external - login to view)

www.google.ca/url?sa=t&rct=j&...vVaxECPV6PWJsg (external - login to view)

ActionPlan in Action.
Last edited by petros; 2 weeks ago at 11:45 AM..
 
damngrumpy
No Party Affiliation
#5
I think the visuals are starting to appear after months of discussing solutions behind
closed doors. There are several sectors examining ways to increase exports
Governments Federal and Provincial have been working toward this outcome.
How is it that some people think the Prime Minister takes a hands on view of trade
or even deciding if the person who broke into Trudeaus house should be charged?
I am not a fan of Harper but to suggest he's got to take a personal involvement in
trade talk details and infrastructure discussions is not realistic.
I have been involved in some discussions when it comes to Horticulture from an
idea standpoint but I am nowhere in the loop after the idea discussion stage that is
left to experts which I am not and the PM wouldn't be either
 
mentalfloss
#6
Quote: Originally Posted by petrosView Post

Where have you been for the last 7 years?

INDEX

Asia-Pacific Gateway and Corridor Initiative (external - login to view)

GTH | Global Transportation Hub – Saskatchewan's Gateway to the World (external - login to view)

Regina Bypass Project | PPP Canada (external - login to view)

Port Alberta Inland Port Development Strategy (Edmonton). | Freight | Library (external - login to view)

Centreport Canada, Winnipeg Inland Port, Manitoba, Trade - Centreport Canada (external - login to view)

www.google.ca/url?sa=t&rct=j&...vVaxECPV6PWJsg (external - login to view)

ActionPlan in Action.

Let me know when it translates into full time jobs.
 
MHz
#7
Let's see Triad or Italian Mafia, such a hard choice. Jobs would have been shipping raw products their way, that slot has been filled by Russia.
 
Locutus
+2
#8  Top Rated Post
Quote: Originally Posted by mentalflossView Post

Let me know when it translates into full time jobs.

'full time' to your voting brood translates into government cubicle entitlement, into 35 hard hours of inter-office drama and angry birds or the c u m-moustachioed baristas frothy cream-art union.

pete's list is proper infrastructure, foundation and nation building trades, hard work, sweaty man-jobs...something left behind...I know, I know, sounds all hard 'n' everything but face it, those guys and gals is building the country into something while the rest of you yearn to just put your feet up and play freecell.
 
mentalfloss
#9
No, full time jobs in the private sector are being eclipsed by part time and it is widely reported that jobs results this year are underwhelming.
 
Locutus
+2
#10
Quote: Originally Posted by mentalflossView Post

No, full time jobs in the private sector are being eclipsed by part time and it is widely reported that jobs results this year are underwhelming.

no...what you idiots want is full time high paying jobs like back in the olden days...ain't gonna happen sonny...find your own way...even p/t or contract, a tradesman will out earn your teat-fed lib ilk and their spawn...you wanna rest easy, well sell half your sh!t and live within your means...want a nice cottage, work for a living and quit rubbing your magic lamp for government to do it for you...tide and irish spring will wash all that nasty grime off your hands and fashions too.
 
mentalfloss
#11
Hey, if you want to be a free marketeer then tell Harper to stop giving fossil fuel subsidies to oil companies and getting them off the teat.
 
petros
+1
#12
Tax Credits dipsh-t. Tax credits.
 
Locutus
#13
oh, and Mercurochrome for the paper cuts and texting sores.
 
IdRatherBeSkiing
+1
#14
Quote: Originally Posted by petrosView Post

Tax Credits dipsh-t. Tax credits.

If Shiny Pony was offering them it would be all good.
 
Locutus
#15
Quote: Originally Posted by IdRatherBeSkiingView Post

If Shiny Pony was offering them it would be all good.

man, a bunch of them would have those dangerous 4-hour rainbowy erections cialis warns us about.
 
Grievous
No Party Affiliation
+1
#16
Quote: Originally Posted by LocutusView Post

no...what you idiots want is full time high paying jobs like back in the olden days...ain't gonna happen sonny...find your own way...even p/t or contract, a tradesman will out earn your teat-fed lib ilk and their spawn...you wanna rest easy, well sell half your sh!t and live within your means...want a nice cottage, work for a living and quit rubbing your magic lamp for government to do it for you...tide and irish spring will wash all that nasty grime off your hands and fashions too.



Why?


Why is someone an idiot for wanting that?


Question, what do you do all day that permits you to mod a website in your spare time?


I doubt very much sweat has ever dripped from your brow other than to close the pop up on a porn site.


Mods, what a crowd.
 
petros
#17
Quote: Originally Posted by mentalflossView Post

Let me know when it translates into full time jobs.

already has dipsh-t
 
Grievous
No Party Affiliation
#18
Quote: Originally Posted by petrosView Post

already has dipsh-t



Yeah, I have to agree with that.


Lot's of money to be had in the patch.
 
petros
#19
Not in"the patch". There is work for everybody in everything else.
 
Kreskin
+1
#20
BC Wood products to China



BC Wood Product Exports to China | Market Type & Sales | FII (external - login to view)
 
petros
#21
How much is sold back as finished product that could be cheaper Siberian softwood but is Canadian?
 
MHz
#22
All in which Black Market is that much much better than the nearest competitor. At least if the motor knocks out you will float to firendly shores. Softwood sucks up lots resin, the straight toothpick like shape also saves machining time. How many miles can a boring machine make in tundra compared to bedrock at that elevation the mine diamonds in open pits
 
Kreskin
#23
Quote: Originally Posted by petrosView Post

How much is sold back as finished product that could be cheaper Siberian softwood but is Canadian?

I don't know. Is there much refined Oil exported from Alberta to China?
 
petros
#24
Quote: Originally Posted by KreskinView Post

I don't know. Is there much refined Oil exported from Alberta to China?

Oil products galore.
 
Kreskin
#25
Quote: Originally Posted by petrosView Post

Oil products galore.

Refined?
 
petros
+1
#26
Quote: Originally Posted by KreskinView Post

Refined?

That's where petro chemicals, esters, paraffins and sulphurs come from. The big money stuff.

Oops almost forgot pharmaceuticals.
 
Kreskin
#27
Quote: Originally Posted by petrosView Post

That's where petro chemicals, esters, paraffins and sulphurs come from. The big money stuff.

Oops almost forgot pharmaceuticals.

Yet BC exports more goods to China. The US is the primary, and almost only, market Alberta exports to.
 
petros
#28
Quote: Originally Posted by KreskinView Post

Yet BC exports more goods to China. The US is the primary, and almost only, market Alberta exports to.

Go to a port and read what's listed as the contents of the black UTLX railcars. Railcar after rail car full of oil products head to Vancouver from AB and SK everyday for export to China.

You've seen this before. Now you know where all that big money sulphur came from.

 
mentalfloss
+1
#29
Quote: Originally Posted by petrosView Post

already has dipsh-t

Unemployment dips to 7%, most new jobs are part time
 
petros
#30
Quote: Originally Posted by mentalflossView Post

Unemployment dips to 7%, most new jobs are part time

Where? In the west?
 
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